Role of cost accounting in business management, Cost Accounting

Role of Cost Accounting in Business Management

The system is a set of interdependent parts that together form a unitary whole such performs some functions. A number of sub systems make up the entire. This context of the organization have, a management information system such may be seen like the overall system along with a number of sub systems involving the cost and management accounting system such provide the information to management for reasons of planning,  directing, organizing and controlling the organization's activities so like to achieve corporate goals involving profit maximization.

Information should be collected, communicated and processed in an organized manner whether the objectives of the enterprise are being efficiently implemented and alternative strategies about their implementations examined, so like to decide on the best strategy.

Information may be non-mutually exclusive in nature. Because that information gathered like part of the management information system may be employed in two or more subsystems for differing reasons. An example of this information is along with regard to the location and amount of work in progress: as like work in progress refers to partly finished units of products whereas a product passes via a number of operations and processes before to be passed into finished to the customer or goods store. Work in progress information may be used via:

a) Production planning department in sequence to monitor the progress of parts of an order via the production procedure and to instigate action to speed up the completion of slow moving parts of the order

b) By quality control department in comparing one batch of product along with another in highlighting the incidence of process losses for their location

c)  By cost management department in the quantification and valuation of real loses like compared to the level originally permitted for in the business plan

d) Financial accounting department into the valuation of work in progress for balance sheet reasons and for purposes of find out the cost of sales in the income statement.

Posted Date: 2/5/2013 2:07:10 AM | Location : United States







Related Discussions:- Role of cost accounting in business management, Assignment Help, Ask Question on Role of cost accounting in business management, Get Answer, Expert's Help, Role of cost accounting in business management Discussions

Write discussion on Role of cost accounting in business management
Your posts are moderated
Related Questions

Inventory, Supplies and Prepaid Expenses You can well understand the requirements for carrying inventory. So as to  carry  on operations unhindered we require to have sufficien


DIFERENCE BETWEEN MARGINAL AND DIFFERENTIAL COSTING

Management Accounting It is the part of accounting such provides special-reason statements and reports to other persons and management inside the organization.  The informatio

If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit?


Martinez Corporation engaged in the following cash transactions during 2012. Sale of land and building $186,710 Purchase of treasury stock 42,130 Purchase of land 39,130

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

Explanations on the correct fixation of selling price